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Purbani Group: The CSR Pioneer in Bangladesh

The document summarizes Purbani Group, a large garment supplier in Bangladesh. [1] It started as a small textile trader and is now vertically integrated with spinning, knitting, dyeing and apparel production. [2] Purbani implements sustainability initiatives like an energy efficiency program and empowering women employees. [3] Over 60% of its 7,000 employees are young women, and it provides childcare to support working mothers.

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103 views

Purbani Group: The CSR Pioneer in Bangladesh

The document summarizes Purbani Group, a large garment supplier in Bangladesh. [1] It started as a small textile trader and is now vertically integrated with spinning, knitting, dyeing and apparel production. [2] Purbani implements sustainability initiatives like an energy efficiency program and empowering women employees. [3] Over 60% of its 7,000 employees are young women, and it provides childcare to support working mothers.

Uploaded by

Kyle
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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BM1807

Names______________________________________Section BA 301
Date October 17, 2021 _

ACTIVITY
Purbani Group: The CSR Pioneer in Bangladesh
Purbani Group is one of the largest suppliers of garments to the world’s leading fashion brands and
retailers such as H&M, K-Mart, and Hanes. In the 1970s, it started as a small textile yarn trader in Dhaka,
Bangladesh, and is now a vertically integrated apparel production facility. Its annual turnover is around
$150 million or more than P7 billion, and it employs 7,000 people.

The group has several vertically integrated spinning, knitting, apparel, dying, and yarn trading
companies. The business model is a self-sufficient one, as it produces yarn from imported cotton, used
to produce fabrics in its textile mills and feed the 100% export-oriented apparel manufacturing facilities.
Committed to social responsibility, Purbani’s recent collaboration with an Indian company that provides
advisory services in the field of international cooperation for sustainable development worldwide is
underway to implement an energy services company model (ESCO), which transforms energy usage. The
group’s implementation of the ESCO model helps combine various energy sources to maximize cleaner
energy use and reduce energy waste by improving building facilities, lighting, and air-cooling system.

The company is also a pioneer in women empowerment through employment. More than 60% of its
workforce is young women. Given the demography, many of the female employees are young mothers.
Purbani has created nursery and schooling facilities within its factory premises, allowing parents to bring
their children to work and be taken care of by the nursery staff until the end of shifts. Also, frequent
breaks allow mothers to check on and feed their babies, reducing the number of skilled-female workers
quitting after childbirth, and encouraging the local community particularly young mothers to participate
in livelihood programs. Purbani understands that their initiatives in environmental and social welfare
have created a virtuous cycle of sustainability, productivity, and brand image.

Answer the following questions: (5 items x 10 points)


1. Which between Milton Friedman’s and Archie Carroll’s views on business responsibility is being
demonstrated on the given case?
Archie Carroll's views on business responsibility are being demonstrated in the given case.
Purbani group did not only maximize their profit but also fulfilled their responsibilities. First,
they are one of the major clothing suppliers with a revenue of around 7 billion pesos. A business
must make a profit to pay its creditors and give dividends to its shareholders. Second, the group
complied with the law because you can't continue your business if it's illegal. Third, the Purbani
group collaborated with an Indian group and implemented the ESCO model to help the
environment. They also pioneered in women's empowerment. More than 60% of its workforce
are young women. We all know that most women were mistreated before and even now;
therefore, I'm grateful that the Purbani group treats women equally and recognizes our
potential. Lastly, the Purbani group established nursery and schooling facilities to encourage
moms to continue working even after childbirth. They also created livelihood programs for
young mothers.

2. Who are the primary stakeholders of Purbani Group based on the facts stated in the case?
The primary stakeholders of the Purbani group are H&M, K-Mart, and Hanes because they
are the supplier of these brands. The Indian company is also considered as the primary
stakeholder. Additionally, young women are also part of the primary stakeholders because they
are part of the company's employees.
3. Who are the secondary stakeholders of the company based on the facts stated in the case?
The secondary stakeholders are the young women that are participating in the livelihood
program.

4. What is/are the influence/s of stakeholders to the strategic decisions of the company?
The Purbani group considered their primary and secondary shareholders before making any
strategic decision. They implemented livelihood initiatives for the young women, who are
regarded as their secondary stakeholders. Furthermore, the group built a nursery and school so
that their employees that already gave birth wouldn’t have to stop working.

5. Which among the basic views of ethical behavior will contribute to sustaining the success of
Purbani Group?
The basic view of ethical behavior that would sustain the success of the Purbani group is
the justice approach that proposes that they can be equitable, fair, and impartial in distributing
costs and benefits to individuals and groups. They should treat primary and secondary
stakeholders equally because they have a significant role in its success.

Rubric for grading:


CRITERIA PERFORMANCE INDICATORS POINTS
Content Provided pieces of evidence, supporting details,
8
and factual scenarios
Grammar Used correct grammar, punctuation, spelling, and
1
capitalization
Organization Expressed the points in clear and logical
1
of ideas arrangement of ideas in the paragraph
TOTAL 10

Reference:
Bamford, C., Hoffman, A., Hunger, D., & Wheelen, T. (2018). Strategic management and business policy: Globalization, innovation
and sustainability (15th ed.). UK: Pearson Education Limited.

04 Activity 3 *Property of STI


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